Putin Orders Exporters to Sell Foreign Currency, Strengthening Rouble Against Dollar

The Russian rouble jumped against the dollar after Putin ordered mandatory sale of exporters' foreign currency revenues. This is similar to capital controls imposed earlier that strengthened the rouble.

The rouble had been weakening this year due to capital outflows, falling exports and rising imports. Experts predict it will strengthen to 88-92 per dollar by end of year.

The new 6-month capital controls require companies to submit plans to the central bank to ensure compliance. The goal is to increase transparency and reduce currency speculation.

The central bank now endorses the controls after previously warning they would be inefficient. It says the measures will improve liquidity and reduce volatility.

Some see the controls as a sign of desperation to stabilize the rouble. Effectiveness depends on how rigidly they are implemented.